DoD Awards $68.9M FMS Support Contract to SAIC Under Full and Open Competition
Contract Overview
Contract Amount: $68,913,850 ($68.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2007-05-24
End Date: 2024-01-25
Contract Duration: 6,090 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: FMS SUPPORT FOR PEO SHIPS
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $68.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FMS SUPPORT FOR PEO SHIPS Key points: 1. Significant contract value of $68.9 million for FMS support. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate given the long duration and cost-plus award fee structure. 4. Engineering services sector, with a focus on defense procurement.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee (CPAF) structure incentivizes performance but can lead to higher costs than fixed-price contracts. Benchmarking against similar engineering services contracts is necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the long contract duration (6090 days) and CPAF pricing could still allow for cost growth over time.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the CPAF structure warrants monitoring to ensure taxpayer funds are used efficiently.
Public Impact
Ensures continued support for Program Executive Office (PEO) Ships. Supports critical defense acquisition and program management functions. Long-term engagement indicates sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6090 days) increases risk of cost escalation.
- Cost Plus Award Fee (CPAF) structure can lead to higher final costs.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contractor has a history of performance (implied by award).
- Clear delivery order structure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense program management. Spending in this area is substantial across the DoD, with significant variation based on program complexity and duration.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting in the provided data. This represents a missed opportunity for small business participation in a significant federal contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the long duration and CPAF structure necessitate diligent monitoring of performance and costs to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases risk.
- Cost Plus Award Fee (CPAF) structure.
- No small business participation.
- Potential for scope creep over the contract's life.
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FMS SUPPORT FOR PEO SHIPS
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $68.9 million.
What is the period of performance?
Start: 2007-05-24. End: 2024-01-25.
What is the typical cost range for similar FMS support contracts awarded under full and open competition?
The typical cost range for similar FMS support contracts can vary widely based on scope, duration, and complexity. However, contracts in the tens of millions over several years are common for specialized engineering and program management services within the DoD. Benchmarking against contracts with similar NAICS codes (e.g., 541330) and contract types (CPAF) is crucial for a precise comparison.
What are the key performance indicators (KPIs) used to assess SAIC's performance under this CPAF contract?
Key performance indicators for this CPAF contract likely focus on technical execution, schedule adherence, cost control, and overall program support effectiveness for PEO Ships. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS). The award fee structure implies that meeting or exceeding these KPIs directly impacts the contractor's final payment and profit.
How does the long contract duration impact the government's ability to adapt to changing technological or strategic needs?
The long contract duration of 6090 days (over 16 years) presents a challenge for the government's agility. While delivery orders allow for some flexibility, fundamental shifts in technology or strategy might necessitate contract modifications or new procurements. This extended commitment requires robust contract management to ensure continued relevance and value throughout its life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3014
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $745,908,581
Exercised Options: $124,032,118
Current Obligation: $68,913,850
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4143
IDV Type: IDC
Timeline
Start Date: 2007-05-24
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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